Short and long-term FX trades to watch
Dave Floyd is a professional FX and stock trader based in Bend, OR and the
President of Aspen Trading Group. Dave’s approach to FX combines technical
and fundamental analysis that results in trades that fall into the swing
trading time frame of several hours to several days. For a free trial to
Dave Floyd’s Daily Forex Alerts
Special Feature —
January 16, 2006
Normally on Monday’s we
post our 24-Hour FX Price Targets — however, given the holiday here in
the US, we decided to post some of our thoughts on some short and long-term
trade ideas.
Long-Term Trade Ideas (several weeks in duration)
The chart below is ‘busy’
in terms of the notations so the bullet points are as follows:
– strong support in the
1.0775 1.0800 level is created by previous support back in Aug-Sep ’05 (red
dotted line)
– fib support of recent
move higher from Dec – Jan, 1.0740
– the break of the 5-month
downtrend is also bullish
– from a macro
perspective, we still expect AUD to outperform NZD for 2006
– we view this as a
longer-term trade (i.e. several weeks). When triggered on the long side, we
look for 1.0950 as the first upside target
Short-Term Trade Idea (several hours)
We like GBP/USD as a short
as we expect it to rally into the 1.7680-1.7700 level where we would expect more
sellers to show up after the decline off Friday’s resistance level at 1.7760. A
modest move lower towards 1.7640 seems reasonable.
The daily chart below also
suggests near-term weakness.
As always, feel free to send me your comments and questions.
Dave Floyd is a professional FX and stock trader based in
Bend, OR and the President of Aspen Trading Group. Dave’s approach to FX
combines technical and fundamental analysis that results in trades that fall
into the swing trading time frame of several hours to several days.